DOJ Alleges Fraud Against Facilitator of Lottery Scheme Targeting Seniors

Defendant Timothy Mulholland facilitated a predatory mail and wire fraud scheme directed at seniors, said a May 3 DOJ complaint (docket 3:23-cv-02448) in U.S. District Court for New Jersey in Trenton. Starting in 2016, Mulholland assisted the fraud scheme in which participants contact potential victims, falsely claim they won the lottery and induce them to send money to him to account for taxes, fees and other costs associated with the fictitious lottery winnings, the complaint said. Mulholland receives victims' payments in the form of checks, money orders and cash by mail and direct deposits in his bank accounts and then sends the payments to scheme participants in Jamaica and elsewhere, the complaint said. U.S. Postal Inspection Service (USPIS) databases show at least 29 mailings in support of the scam between August 2016 and January. The USPIS sent Mulholland letters in April and September 2022 warning him that continued participation in the wire scheme could lead to criminal or civil enforcement methods, but he continued to facilitate the scam, the complaint said. In December, a 69-year-old victim from Hawaii mailed Mulholland a cell phone for $800 and a check for about $6,500 for “lottery fees,” the complaint said. The suit seeks injunctive relief for fraud and mail fraud, plus further relief deemed proper by the court.